For Taxpayers & Donors

Turn a tax credit into a Kentucky child's opportunity.

The Education Freedom Tax Credit (EFTC) lets you give to an approved scholarship granting organization and claim a dollar-for-dollar federal tax credit — not just a deduction.

Rules are still being finalized. The EFTC was created by federal law in 2025 and Kentucky opted in via House Bill 1 (effective March 2026). Treasury and the IRS released proposed EFTC regulations on October 1, 2026, along with temporary rules for 2027 state and SGO procedures — final regulations haven't been published yet. The calculator below estimates your federal tax liability using the most recently published IRS tax brackets, standard deduction, and Child Tax Credit figures (tax year 2026 — 2027 figures weren't published yet as of this update), counting only income, filing status, and children. It ignores other income, deductions, and credits, so your real liability may differ. Figures below reflect proposed EFTC rules and may change — this page is not tax advice.

How the federal credit works

Dollar-for-dollar credit

Up to $1,700 for single filers or $3,400 for married filing jointly, per year — a credit against what you owe, not just a deduction off your income.

Nonrefundable, carries forward

If your credit exceeds your tax liability this year, the unused portion can carry forward for up to 5 years.

One credit per dollar

You can't claim both a state credit and the federal credit for the same donated dollar. Ask your preparer which makes more sense for you.

95%+American children live in households that meet the income limit
$26B+Projected annual donor contributions nationwide by 2030
~2MFull-time scholarships (~$12,000 each) that level of giving could support per year

Source: U.S. Department of the Treasury & U.S. Department of Education, Education Freedom Tax Credit Fact Sheet (Oct. 2026). These are national projections, not a guarantee for any individual SGO.

Tax Credit Estimator

Answer a few questions about your household and we'll estimate your federal tax liability and what your donation could be worth as a credit against it — most people don't already know their tax liability off-hand, so we calculate it for you.

Filing status

Total income before taxes (wages, etc.) for everyone on your return.

Used to estimate your Child Tax Credit.

Deductions

What happens next

1

We open donations

Kentucky Education Freedom is already listed as an approved SGO. Once the federal program opens on January 1, 2027, we'll email everyone on our list first.

2

You give & get a receipt

You'll receive documentation to claim your federal credit when you file.

3

Your gift funds scholarships

Federal law requires every SGO to spend at least 90% of donations received on scholarship awards. Kentucky Education Freedom meets that requirement and reports transparently on how funds are used.